1. Why industrial demand is called derived demand?

Industrial demand is called derived demand because it depends on the demand

for the final products that use the industrial goods. For example, if people want to
buy more cars, then the car manufacturers will need more steel, rubber, glass, and
other materials to make the cars. So, the demand for these industrial goods is
derived from the demand for cars. Similarly, if people want to buy more clothes,
then the textile factories will need more cotton, yarn, dye, and other materials to
make the clothes. So, the demand for these industrial goods is derived from the
demand for clothes.

Derived demand means that the demand for one thing is based on the demand for
another thing. It is different from direct demand, which is the demand for
something that people want to use or consume by themselves. For example, people
have direct demand for food, water, entertainment, and so on. Industrial goods are
not directly demanded by consumers, but by producers who use them to make
other goods. That is why industrial demand is called derived demand12345

2. Define industrial marketing research.

Industrial marketing research is the process of collecting, analyzing, and reporting

data or information for making decisions in industrial marketing. Industrial
marketing is the type of marketing that involves selling goods or services from one
business to another. For example, a company that makes machines for factories is
doing industrial marketing.

Industrial marketing research helps a business to understand the needs and

preferences of its industrial customers, such as other manufacturers, suppliers, or
buyers. It also helps a business to develop and implement effective marketing
strategies, such as pricing, distribution, promotion, and sales. Industrial marketing
research also helps a business to evaluate the performance and profitability of its
industrial market.

Industrial marketing research is different from consumer marketing research,

which focuses on individual consumers who buy goods or services for their own
use. Industrial marketing research is more complex and specialized, as it deals with
large-scale and technical products, long-term and contractual relationships, and
multiple decision-makers1234
3. What are the benefits of industrial market segmentation?

Some of the benefits of industrial market segmentation are:

• It helps to identify the most profitable and promising segments of the

industrial market, and focus the marketing efforts and resources on them12.
• It helps to understand the needs, preferences, and behavior of the industrial
customers, and tailor the products, services, and communication strategies
accordingly123.
• It helps to increase the competitiveness and differentiation of the business,
by offering customized solutions and value propositions to the target
segments12.
• It helps to retain and satisfy the existing customers, and attract new ones, by
building long-term and loyal relationships based on trust and mutual
benefit12.
• It helps to create and explore new market opportunities, by identifying the
gaps and niches in the industrial market, and developing innovative products
or services to fill them12.
• It helps to design and execute effective market campaigns, by selecting the
appropriate channels, media, and messages for each segment12.

4. Write short notes on industrial marketing communication.

Industrial marketing communication is the way of sharing information and

messages between a business that sells industrial goods or services and another
business that buys them. Industrial goods or services are things that are used to
make other things, such as machines, materials, or tools. For example, a business
that makes cars needs to buy steel, rubber, and glass from other businesses.

Industrial marketing communication helps a business to:

• Tell the buyers about its products or services, and how they can benefit them
• Persuade the buyers to choose its products or services over the competitors
• Build trust and loyalty with the buyers, and keep them satisfied
• Get feedback and suggestions from the buyers, and improve its products or
services

Industrial marketing communication uses different methods, such as:

• Advertising in magazines, websites, or trade shows that the buyers read or

visit
• Sales promotion, such as discounts, free samples, or contests, to attract the
buyers’ attention and interest
 • Publicity, such as news stories, press releases, or awards, to create a positive
image and reputation for the business
• Public relations, such as sponsoring events, donating to causes, or joining
associations, to show the business’s social responsibility and values
• Personal selling, such as meeting, calling, or emailing the buyers, to explain
the features and benefits of the products or services, and answer their
questions
• Direct marketing, such as sending catalogs, brochures, or newsletters, to
provide more information and offers to the buyers1234

5. Define industrial product.

An industrial product is a product that is used by another business to make other

products or services. For example, a factory that makes cars needs to buy steel,
rubber, and glass from other businesses. These are industrial products. Industrial
products are different from consumer products, which are products that are used by
people for their own needs or enjoyment. For example, a person who buys a car or
a shirt is using a consumer product. Industrial products are usually more complex,
technical, and expensive than consumer products. They are also sold in smaller
quantities and have longer life cycles. Industrial products are important for the
economy, as they help businesses to produce goods and services that meet the
demand of consumers and other businesses123

6. List out the various factors influencing industrial pricing.

Industrial pricing is the process of setting the price for goods or services that are
sold from one business to another. There are various factors that influence
industrial pricing, such as:

• Cost: The cost of producing, distributing, and selling the product or service
affects the price. The business needs to cover its costs and earn a profit
margin1.
• Demand: The demand for the product or service depends on how much the
customers need and want it, and how they perceive its value and quality.
The higher the demand, the higher the price12.
• Competition: The competition in the market affects the price. The business
needs to consider the prices, products, and strategies of its competitors, and
decide whether to match, lower, or raise its price12.
• Objectives: The objectives of the business influence the price. The business
may have different goals, such as survival, profit maximization, market
share, customer satisfaction, or social responsibility. The price should reflect
the desired outcome12.
 • Regulations: The regulations of the government and legal authorities affect
the price. The business needs to comply with the laws and rules that may
limit or control the price, such as taxes, subsidies, tariffs, or price ceilings123.
• Methods: The methods of marketing and selling the product or service
affect the price. The business may use different methods, such as
advertising, promotion, distribution, or negotiation, to communicate and
deliver the value of the product or service to the customers124.

7. What constitutes industrial middlemen?

Industrial middlemen are intermediaries who facilitate the exchange of goods or

services between businesses. They do not produce anything themselves, but they
provide valuable functions such as information, transportation, storage, promotion,
negotiation, and financing. Industrial middlemen can be classified into two types:
merchants and agents123.

• Merchants are middlemen who buy and sell industrial goods. They take
ownership and risk of the goods, and earn profits by adding a markup to the
price. Examples of merchants are wholesalers and retailers.
• Agents are middlemen who act on behalf of buyers or sellers of industrial
goods. They do not take ownership or risk of the goods, but earn
commissions or fees for their services. Examples of agents are brokers, sales
representatives, and distributors.

Industrial middlemen help to reduce the costs and complexities of transactions

between businesses, and increase the efficiency and effectiveness of the industrial
market123

8. Define recruitment and selection.

Recruitment and selection are two important steps in the hiring process of a
company. Recruitment is the process of finding and attracting people who are
interested and qualified for a job. Selection is the process of choosing the best
person for the job from the pool of applicants1

Recruitment involves advertising the job, inviting applications, and screening

candidates. The goal of recruitment is to have a large and diverse number of
candidates to choose from. Recruitment can be done through various methods,
such as online platforms, employee referrals, job fairs, or headhunters12

Selection involves evaluating the candidates, conducting interviews, and making

the final decision. The goal of selection is to find the most suitable and competent
 person for the job. Selection can be done through various tools, such as tests,
assessments, background checks, or references12

Recruitment and selection are essential for a company to hire the best talent and
achieve its goals1234

9. Discuss the role of a sales manager.

The role of a sales manager is to lead and motivate a team of salespeople who sell
goods or services to other businesses or customers. A sales manager has the
following responsibilities:

• Setting sales goals and quotas for the team and individual salespeople, and
tracking their progress and performance12
• Developing and implementing sales strategies and plans, such as pricing,
distribution, promotion, and sales methods123
• Hiring, training, coaching, and evaluating salespeople, and providing them
with feedback and incentives123
• Managing customer relationships and ensuring customer satisfaction and
loyalty123
• Conducting market research and analysis, and staying updated on the market
trends, customer needs, and competitor activities123
• Reporting and presenting the sales results and forecasts to the senior
management and stakeholders123

A sales manager plays a vital role in the success and growth of a business, as they
are responsible for generating revenue, increasing market share, and building a
strong sales team and culture123
10. What is the significant of motivation for sales force?

Motivation for sales force is the process of inspiring and encouraging the
salespeople to work hard and achieve their sales goals. Motivation is important for
sales force because it can lead to:

• Higher sales performance and revenue for the company12

• Greater customer satisfaction and loyalty123
• More creativity and innovation in sales strategies1
• Stronger work ethic and self-esteem among salespeople1
• Better relationships and teamwork within the sales force12

Some of the factors that influence motivation for sales force are:

• The sales goals and quotas that are set by the sales manager12
• The rewards and incentives that are offered to the salespeople123
 • The feedback and recognition that are given to the salespeople 123
• The training and coaching that are provided to the salespeople123
• The personality and attitude of the salespeople124

Some of the methods that can be used to motivate sales force are:

• Advertising, sales promotion, and publicity12

• Sales contests and games123
• Promotion and career development opportunities123
• Public relations and social responsibility activities12
• Personal selling and direct marketing124

11. Describe the method used to determine the size of sales force.

There are different methods used to determine the size of sales force, such as:

• Breakdown method: This method divides the total sales forecast by the
average sales per salesperson. It assumes that all salespeople have the same
productivity and all markets have the same potential1.
• Workload method: This method estimates the total workload (i.e., the
number of hours required to serve the entire market) and divides it by the
selling time available per salesperson. It accounts for the different needs and
categories of customers12.
• Incremental method: This method compares the marginal profit
contribution with the incremental cost for each salesperson. It determines
the optimal sales force size when the marginal profit equals the marginal
cost and the total profit is maximized123.

The incremental method is the most precise and complex method, while the
breakdown method is the simplest and crudest method. The workload method is
the most commonly used and practical method12.

12. Write a short note on sales territory.

A sales territory is a group of customers or a geographic area that is assigned to a

salesperson or a sales team. The purpose of a sales territory is to divide the market
into manageable and measurable units, and to match the sales opportunities with
the sales efforts. A sales territory can help a company to:

• Increase sales performance and revenue by focusing on the most profitable

and promising customers12
• Reduce costs and save time by avoiding duplication and overlap of sales
activities12
 • Improve customer service and satisfaction by providing regular and
personalized attention123
• Motivate and evaluate salespeople by setting clear and realistic goals and
quotas123

A sales territory can be defined based on different factors, such as geography, sales
potential, customer type, industry, product, or history. A company should consider
the size, characteristics, and needs of the market, the competition, the objectives,
and the resources when designing and allocating sales territories1234.

Section-B

(Long Answer Type Questions)

Note: Attempt any four (04) question.

4×10=40

1. What is Industrial Marketing? Explain the differences between consumer and Industrial
Marketing.

Industrial marketing is the marketing of goods and services from one business to
another. It is also known as business-to-business (B2B) marketing. Industrial
marketing is different from consumer marketing, which is the marketing of goods
and services to individual customers. Here are some of the main differences
between industrial and consumer marketing:

• Market size and structure: Industrial markets are smaller and more
concentrated than consumer markets. There are fewer buyers, but they buy
in larger quantities and have more bargaining power. Industrial buyers are
also more geographically dispersed and specialized than consumer buyers12.
• Product complexity and customization: Industrial products are more
complex, technical, and expensive than consumer products. They often
require installation, maintenance, and after-sales service. Industrial products
are also more customized and tailored to the specific needs and preferences
of each buyer123.
• Buying process and decision-making: Industrial buying is more rational,
formal, and structured than consumer buying. It involves multiple decision-
makers, such as engineers, managers, and purchasing agents, who have
different roles and criteria. Industrial buying also takes longer and involves
more stages, such as problem recognition, information search, evaluation of
alternatives, negotiation, and order placement1234.
• Marketing strategy and communication: Industrial marketing requires a
different marketing mix than consumer marketing. Industrial marketers
 focus more on product quality, performance, and reliability than on price,
packaging, or promotion. Industrial marketers also use more personal and
direct communication channels, such as sales representatives, trade shows,
and catalogs, than mass media, such as TV, radio, or newspapers1234.

In summary, industrial marketing is the marketing of goods and services from one
business to another. It differs from consumer marketing in terms of market size and
structure, product complexity and customization, buying process and decision-
making, and marketing strategy and communication. Industrial marketing requires
a deeper understanding of the industrial customers and their needs, and a more
relationship-oriented and solution-based approach1234.

2. Discuss Industrial buying process.

The industrial buying process is the process of how businesses buy goods or
services from other businesses. It is also known as the organizational buying
process or the business buying process. The industrial buying process is different
from the consumer buying process, which is how individuals buy goods or services
for their own use. The industrial buying process is more complex, formal, and
rational than the consumer buying process. It involves multiple people, stages, and
factors in the decision making12.

According to Robinson, Faris, and Wind, the industrial buying process consists of
eight phases12:

• Problem recognition: The buyer identifies a problem or a need that can be

solved by buying a product or service. The problem can be triggered by
internal or external factors, such as a breakdown, a complaint, a new
demand, or a new opportunity.
• General need description: The buyer describes the general characteristics
and quantity of the product or service that is needed. The buyer may consult
with other departments, such as engineering, production, or quality control,
to determine the possible solutions and specifications.
• Product specification: The buyer develops a detailed statement of the
features, functions, and standards of the product or service that is required.
The buyer may seek information from various sources, such as suppliers,
consultants, or trade publications, to help define the product specification.
• Supplier search: The buyer searches for potential suppliers who can
provide the product or service that meets the product specification. The
buyer may use different methods, such as online platforms, trade shows,
directories, or referrals, to find and evaluate suppliers.
• Proposal solicitation: The buyer invites qualified suppliers to submit
proposals or bids for the product or service. The buyer may request different
 types of information, such as price, delivery, warranty, or service, from the
suppliers.
• Supplier selection: The buyer compares and selects the best supplier from
the proposals or bids received. The buyer may use different criteria, such as
quality, reliability, reputation, or value, to make the decision. The buyer
may also negotiate with the suppliers on the terms and conditions of the
contract.
• Order-routine specification: The buyer places the order with the selected
supplier and specifies the details of the order, such as quantity, delivery,
payment, or installation. The buyer may also establish a purchase order
system to monitor and control the order.
• Performance review: The buyer evaluates the performance of the supplier
and the product or service after the delivery and use. The buyer may use
different measures, such as feedback, complaints, or satisfaction, to assess
the outcome. The buyer may also provide feedback or suggestions to the
supplier for improvement.

The industrial buying process is a dynamic and interactive process that involves
many people, stages, and factors. The industrial marketer should understand and
influence the industrial buying process to create and maintain a successful
relationship with the buyer123.

3. Why Industrial marketers have to make changes in the Product strategy?

Industrial marketers have to make changes in the product strategy because of the
following reasons:

• Changing customer needs and preferences: Industrial customers are

constantly looking for new and better solutions to their problems and
challenges. They want products that are more efficient, reliable, innovative,
and customized to their specific requirements. Industrial marketers have to
adapt their product strategy to meet these changing needs and preferences,
and to create value propositions that differentiate them from the
competitors12.
• Increasing competition and globalization: Industrial markets are
becoming more competitive and globalized, as new entrants, substitutes, and
rivals emerge from different regions and sectors. Industrial marketers have
to modify their product strategy to cope with the increased competition and
globalization, and to maintain or gain market share, profitability, and
customer loyalty123.
• Advancing technology and innovation: Technology and innovation are
driving forces in the industrial markets, as they enable new product
development, improvement, and differentiation. Industrial marketers have to
update their product strategy to leverage the latest technology and
 innovation, and to offer products that are more advanced, functional, and
compatible with the customer’s systems and processes124.
• Evolving regulations and standards: Regulations and standards are
important factors in the industrial markets, as they affect the quality, safety,
and environmental impact of the products. Industrial marketers have to
revise their product strategy to comply with the regulations and standards,
and to avoid legal, ethical, or reputational risks125.

In summary, industrial marketers have to make changes in the product strategy to

respond to the dynamic and complex nature of the industrial markets, and to
achieve their marketing objectives and goals12.

4. What are the different functions carried out generally by industrial distributers/ dealers?

Industrial distributors or dealers are intermediaries who buy and sell industrial
goods or services from one business to another. They do not produce anything
themselves, but they provide valuable functions for both the manufacturers and the
customers of the industrial goods or services. Some of the different functions
carried out generally by industrial distributors or dealers are123:

• Buying: Industrial distributors or dealers purchase products from the

manufacturers in bulk and resell them to the customers in smaller quantities.
They assume the ownership and risk of the products, and earn profits by
adding a markup to the price.
• Transportation and warehousing: Industrial distributors or dealers
transport and store the products from the manufacturers to the customers.
They ensure the timely and safe delivery of the products, and maintain the
inventory levels and quality standards.
• Promotion and selling: Industrial distributors or dealers promote and sell
the products to the customers. They use various methods, such as
advertising, sales promotion, and personal selling, to communicate the
features and benefits of the products, and to persuade the customers to buy
them.
• Offering credit: Industrial distributors or dealers offer credit facilities to the
customers, such as deferred payment, installment, or leasing. They help the
customers to finance their purchases, and increase their sales volume and
loyalty.
• Providing information and service: Industrial distributors or dealers
provide information and service to both the manufacturers and the
customers. They collect and share market data, customer feedback, and
competitor activities. They also provide after-sales service, such as
installation, maintenance, repair, and training.
 Industrial distributors or dealers play an important role in the industrial market, as
they bridge the gap between the manufacturers and the customers, and add value to
the distribution process. They perform functions like buying, transportation and
warehousing, promotion and selling, offering credit, and providing information and
service123

5. What is sales management? Explain the objectives and scope of sales management.

Sales management is the process of leading and directing a sales team to achieve
sales objectives. It involves creating strategies, setting goals and providing
guidance to sales team members to help them meet those goals. Sales management
is a core business process in most organizations, as it is responsible for generating
revenue, increasing market share, and ensuring customer satisfaction12.

Some of the main objectives of sales management are:

• To plan, organize, implement, control, and evaluate the sales activities and
performance of the sales team
• To recruit, train, motivate, and retain qualified and competent salespeople
• To develop and implement effective sales strategies and plans, such as
pricing, distribution, promotion, and sales methods
• To forecast and budget the sales revenue and expenses, and monitor the
sales results and variances
• To analyze the market trends, customer needs, and competitor actions, and
adjust the sales plans accordingly
• To establish and maintain good relationships with customers and other
stakeholders, and ensure customer satisfaction and loyalty
• To coordinate and cooperate with other departments, such as marketing,
production, finance, and human resources, to achieve the organizational
goals
• To comply with the ethical, legal, and social norms and standards of the
industry and society123

The scope of sales management covers the following aspects:

• Sales force management: This refers to the management of the human

resources involved in the sales process, such as salespeople, sales managers,
and sales support staff. It includes the functions of recruitment, selection,
training, assignment, supervision, compensation, and evaluation of the sales
force12.
• Sales operations management: This refers to the management of the
activities and processes related to the execution of the sales transactions,
such as order processing, delivery, invoicing, payment, and service. It
 includes the functions of sales administration, sales automation, and sales
logistics124.
• Sales strategy management: This refers to the management of the decisions
and actions that determine the direction and objectives of the sales function,
such as market segmentation, targeting, positioning, and differentiation. It
includes the functions of sales planning, sales forecasting, sales budgeting,
and sales control125.

In summary, sales management is the process of leading and directing a sales team
to achieve sales objectives. It has various objectives and functions that cover the
aspects of sales force management, sales operations management, and sales
strategy management. Sales management is a vital part of any organization that
sells goods or services to customers12.

6. What is the significance of training a sales force? Discuss the various methods of sales
training.

Training a sales force is the process of improving the skills, knowledge, and
attitudes of the salespeople who sell goods or services to customers. Training a
sales force is important for several reasons, such as12:

• It helps to increase the sales performance and revenue of the company by

enabling the salespeople to sell more effectively and efficiently
• It helps to reduce the turnover and absenteeism of the sales force by
enhancing their motivation, satisfaction, and loyalty
• It helps to improve the customer service and retention by equipping the
salespeople with the ability to handle customer needs, complaints, and
expectations
• It helps to cope with the changing market conditions, customer preferences,
and competitive pressures by updating the salespeople with the latest
product, company, and industry information
• It helps to develop the sales force as a valuable asset and resource for the
company by fostering their creativity, innovation, and professionalism

There are different methods of sales training that can be used to achieve these
objectives. The methods can be classified into two broad categories: on-the-job and
off-the-job methods123.

On-the-job methods are those that involve training the salespeople in their actual
work environment, such as:

• Coaching: This is a method where an experienced sales manager or trainer

observes, guides, and advises the salesperson during the sales process. The
coach provides feedback, suggestions, and encouragement to the salesperson
to improve their performance12.
 • Job rotation: This is a method where the salesperson is assigned to different
sales territories, markets, or products to gain exposure and experience in
various aspects of the sales job. The salesperson learns from the diversity
and challenges of the different situations12.
• Special assignments: This is a method where the salesperson is given a
specific task or project to complete, such as conducting a market research,
preparing a sales report, or organizing a sales event. The salesperson learns
from the responsibility and autonomy of the assignment12.

Off-the-job methods are those that involve training the salespeople outside their
actual work environment, such as:

• Lecture: This is a method where a trainer delivers a presentation or speech

to the salespeople on a specific topic, such as product features, company
policies, or selling techniques. The salespeople listen and take notes, and
may ask questions at the end124.
• Demonstration: This is a method where a trainer shows the salespeople how
to perform a certain task or skill, such as using a product, making a sales
call, or closing a deal. The salespeople observe and learn from the trainer’s
example124.
• Role-playing: This is a method where the salespeople act out a realistic sales
scenario, such as meeting a customer, handling an objection, or negotiating
a price. The salespeople practice and improve their sales skills in a
simulated environment124.

The choice of the sales training method depends on various factors, such as the
objectives, content, budget, time, and size of the training program. The best sales
training programs use a combination of different methods to achieve the optimal
results123.

7. Define sales planning. Explain the process of sales planning.

Sales planning is the process of setting sales targets and developing a strategy to
reach them. The sales plan is part of the marketing plan as well as the business
plan. The marketing plan describes the strategies while the business plan outlines
the initial company goals. To ensure that the plan stays on track, it is updated
quarterly or annually to allow for adjustments. Sales plans, just like marketing and
business plans, change over time. The plan will often be influenced by the past
experiences of the sales team. It is possible to make adjustments as the plan is
being implemented1.

The process of sales planning involves the following steps12:

• Gather sales data and search for trends. To plan for the present and future,
the company needs to look at the historical data and analyze the market
 dynamics, customer needs, and competitor actions. This can help to identify
the strengths, weaknesses, opportunities, and threats of the sales situation.
• Define the objectives and goals. The company needs to set clear and realistic
sales objectives and goals that are aligned with the overall business strategy
and vision. The objectives and goals should be specific, measurable,
achievable, relevant, and time-bound (SMART).
• Determine the metrics for success. The company needs to establish the key
performance indicators (KPIs) that will measure the progress and results of
the sales plan. The KPIs should be quantifiable, relevant, and consistent
with the objectives and goals.
• Assess the current situation. The company needs to evaluate the current
performance and capabilities of the sales team, as well as the resources and
tools available. The company should also identify the gaps and challenges
that need to be addressed or overcome in the sales plan.
• Start sales forecasting. The company needs to estimate the expected sales
revenue and expenses for the future period, based on the sales data, trends,
objectives, and metrics. The sales forecast should be realistic, accurate, and
flexible to account for uncertainties and changes.
• Identify the strategies and tactics. The company needs to develop and
implement the strategies and tactics that will help to achieve the objectives
and goals of the sales plan. The strategies and tactics should address the
target market, product, price, distribution, and promotion aspects of the sales
mix.
• Set the sales budget. The company needs to allocate the financial resources
for the sales plan, and determine how and when the revenue will be spent or
generated. The sales budget should be consistent with the sales forecast and
the company’s financial constraints.
• Monitor and review the performance. The company needs to track and
evaluate the performance and outcomes of the sales plan, using the metrics
and KPIs. The company should also collect and analyze feedback from the
sales team, customers, and other stakeholders. The company should make
adjustments and improvements to the sales plan as needed.

Sales planning is a vital process for any company that sells goods or services to
customers. It helps to align the sales efforts with the business goals, and optimize
the revenue generation and profitability. Sales planning requires a systematic and
strategic approach, as well as regular monitoring and review12

8. What is sales forecasting? Discuss the importance of sales forecasting?

Sales forecasting is the process of estimating how much revenue a business will
generate in a future period, based on a proposed marketing plan and various factors
that may affect sales. Sales forecasting is an essential part of any business, as it
helps to plan and manage various aspects of the business, such as production,
inventory, budget, marketing, and hiring12.
Some of the importance of sales forecasting are:

• It helps to estimate future revenue and expenses, and set realistic sales
targets and quotas for the sales team and the business as a whole12.
• It helps to allocate resources more efficiently and effectively, and avoid
wastage or shortage of inventory, labor, or capital123.
• It helps to identify and exploit new opportunities for growth, such as new
markets, products, or customers, and adjust the marketing strategies
accordingly123.
• It helps to anticipate and mitigate potential risks and challenges, such as
changes in customer demand, competitor actions, or external factors, and
prepare contingency plans123.
• It helps to improve decision-making and performance evaluation, by using
data and evidence to support and justify the business plans and actions, and
compare the actual results with the forecasted ones124.
• It helps to motivate and align the sales team and other stakeholders, by
providing clear and consistent goals and expectations, and feedback and
recognition124.

Sales forecasting is a vital process for any business that sells goods or services to
customers. It helps to plan and optimize the revenue generation and profitability of
the business, and cope with the dynamic and complex nature of the market. Sales
forecasting requires a systematic and strategic approach, as well as regular
monitoring and review12.